Home / Knowledge / News / Apparel/Garments / Mothercare Group 12 weeks to Jan 4 sales down 6.1%
Mothercare Group 12 weeks to Jan 4 sales down 6.1%
08
Jan '14
Mothercare plc, the leading international mother and baby retailer, issues the following trading update, which covers the 12 and 40 week periods to 4 January 2014.

Overview for 12 weeks to 4 January 2014

- Worldwide network sales were down 4.4% with Group reported sales down 6.1%

- International has been negatively impacted by currency deflation and weaker than expected economic conditions in some of our key markets, resulting in lower royalty revenues

- In the UK, the highly promotional nature of the Christmas period and lower seasonal footfall have impacted both sales and margin, but stock remains closely managed

- We remain cautious about the outlook for consumer expenditure and currency deflation for the rest of the year and therefore full year profit expectations are now below the current range of market forecasts.

Simon Calver, Chief Executive of Mothercare plc, said:

“Difficult UK retail trading conditions and volatility in some of our International markets resulted in weaker than expected worldwide network sales this quarter.

“In the UK, our stores suffered similar Christmas trading pressures to those reported elsewhere. Customer service scores continue to improve year on year but weaker footfall and higher promotional activity led to lower sales and margins.

"Our focus on multichannel has helped mothercare.com to perform well with sales through this channel up over 15% and click and collect continues to perform well. However, our decision not to repeat last year’s free delivery offer combined with a weak toy market impacted elc.co.uk sales, which resulted in Direct in Home experiencing a reduction during the quarter.

“International was impacted by currency deflation reducing the reported rate of growth and by heightened economic volatility. In some of our larger markets such as Russia and the Middle East we have also experienced some unseasonal weather which impacted sales. Trading has been improving more recently.

“As a result of lower UK sales and margin and the International currency impact, full year profits are likely to be below the current range of market expectations. We continue to focus on delivering a turnaround in the UK and exploiting the global growth opportunities for Mothercare.”

Financial position

Aside from matters consequential to the financial performance disclosed in this statement, there has been no material change in the underlying financial position of the business since the beginning of the period.

Mothercare


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search